New Study by Pharmaceutical Intelligence Firm Cutting Edge Information Highlights Cost-Cutting Opportunities in Investigator Payments


RESEARCH TRIANGLE PARK, NC--(Marketwire - May 20, 2009) - On average, pharmaceutical companies spend 34% more than necessary to compensate principal investigators across all phases of clinical development, according to "Managing Clinical Investigator Compensation," a new study from Cutting Edge Information (available at www.ClinicalInvestigatorCompensation.com).

Cutting Edge Information's new research finds that Phase 3b trials present the greatest opportunity for pharmaceutical companies to negotiate lower costs for running their clinical trials. During Phase 3b development, companies budget an average $32,513 for principal investigator compensation. According to data collected from clinical investigators, however, they receive an average of only $13,436 for running a Phase 3b study, 59% less than budgeted.

The significant differences in the amount budgeted for primary investigator compensation and the total that investigators actually receive emphasize cost-saving opportunities for drug and device manufacturers. Cutting Edge Information's benchmarks validate the notion that pharmaceutical companies have more negotiating room with CROs and other sites than they previously believed.

"When pharmaceutical companies understand current market compensation ranges, they can take a stronger position to lower clinical trial costs when negotiating contracts," said Jordan Stone, research analyst at Cutting Edge Information.

The study also finds that clinical development teams will soon feel the same scrutiny that commercial and medical teams face regarding payments to physicians. In fact, instances of investigation have already occurred, such as the one concerning Emory University's Charles Nemeroff's work for GlaxoSmithKline.

"Managing Clinical Investigator Compensation" examines clinical investigator compensation data, collected from drug and device makers, as well as directly from investigators. The study is designed to help pharmaceutical executives:

--  Cut clinical development costs across all phases for more than a dozen
    therapeutic areas.
--  Compare investigator compensation with other companies or against
    industry standards.
--  Prepare for increased scrutiny around physician payments and implement
    formal processes that promote transparency.
--  Negotiate better rates with contract research organizations (CROs)
    around investigator compensation.
--  Eliminate the risk of a compliance audit by implementing the best
    practices contained in the study.
    

Download a complimentary report brochure at http://www.cuttingedgeinfo.com/clinicalinvestigatorcompensation/PH126_Download.asp#body.

Contact Information: CONTACT: Jordan Stone 919-433-0376